The Federal Government has embarked upon a budget management reform programme called the Medium-Term Budgetary Framework (MTBF). Essentially, this means that the upcoming Federal Budget will be based on the model known as “Medium-Term Budget Estimates by Service Delivery” which would present 1 year budget and 2 years projections for services (outputs) delivered by each Ministry / Division. The services are also linked with outcomes (affects on target population) and with the performance indicators and targets. This Background Paper is aimed at sharing details of the MTBF with Parliamentarians as part of the overall budget process reforms introduced by the Government. The brief has been authored by Mr. Nohman Ishtiaq, Consultant MTBF at the Ministry of Finance who is currently leading the MTBF reform and has been working with Ministry of Finance for the past three years.